We will consider the concept of "unit economics

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Sometimes in a business, sales are growing, the number of clients is increasing, but the marginal or net profit is not increasing or is at a minimum level. In such a situation, it is important to analyze the business processes and quickly identify the problem.

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This may be due to an excessively wide range of products or different effective audience acquisition channels. Some products are profitable, while others are unprofitable due to too high variable costs or unjustified costs of attracting one client.

To correct the situation, it is necessary to understand exactly how much money costa rica phone number list one product, service or client brings in over a period. One way to analyze such economic indicators is Unit Economics.

In this article, ". We will determine what this method is needed for, what problems it solves, and learn how to make basic calculations. In addition, we will examine unit economics models in more detail, as well as several common errors that may arise when working with it.

What is unit economics
Unit economics is a calculation method that helps to evaluate the profit of a business and its overall efficiency. Its peculiarity is that profit, income and expenses are estimated per unit of goods or, for example, services.

In fact, it is a way of calculating the financial performance of a business that demonstrates how much a company earns from the sale of one product, customer, or other “unit” that will generate income.

A "unit" is the basic unit of a product or service that a company sells. All calculations within the method are made in units. Each type of business can have its own unit.